Apple TV Goes (pea)nuts
Apple is taking the reins, delivering viewers all of the Peanuts holiday classics. Further, these shows will be available for free for those that don’t subscribe to Apple TV+. (Free, just like they’ve been on broadcast TV for the past few decades.) This move furthers Apple’s strategy of focusing on iconic brands and drawing in catalog programming to support the new shows that are exclusive to the service. New Peanuts productions include a second season of the Apple TV+ original series Snoopy in Space as well as a handful of new original specials including ones for Mother’s Day, Earth Day, New Year’s Eve, and going back to school. Essentially, the availability of the holiday classics will help promote the new exclusive content you get if you subscribe.
The NPD Take:
- Apple is building around tried and true franchises. They did this with Fraggle Rock and now Snoopy. This is starting to feel so 1980s.
- Apple is the turtle of the streaming wars. Indeed, they are extending free trials until Feb 1 as the company expands programming. Why accept churn if you don’t have to?
Max activated
AT&T just announced Q3 earnings and among the myriad of data came a stat about the new streaming service HBO Max. As of now, 8.6 million customers have activated an account, up from 4.1 at the end of the second quarter. The service is growing much slower than we saw with the launch for Disney+. Further, content production challenges are also impacting customer acquisition as the service must focus largely on the promotion of catalog programming. All, said, the company remains on track to deliver an advertising-supported service in 2021. Its aim is to offer HBO Max to market segments that want a lower price point (another way of saying it won’t be free).
The NPD Take:
- No one is immune to the content production challenges, even AT&T which owns its own movie studio. Expect these challenges to persist. While production is starting to ramp up, theatrical exhibition has not.
- Bottom line, the lack of a deal with Amazon and Roku is inhibiting growth.